Global supply chains are bracing for further potential disruptions, as rising tensions in the Red Sea are projected to escalate freight rates in February, according to the Employers’ Confederation of Thai Trade and Industry (EconThai). The organisation has already noted an increase in freight rates by 1.89 to 2.42 times, a trend expected to persist should the tensions continue.
Tanit Sorat, vice-chairman of EconThai, expressed concern over the increasing freight costs exerting pressure on transportation.
“This may eventually lead to higher inflation and an economic slowdown in countries that use shipping routes through the Red Sea.”
EconThai is urging Thai exporters to prepare for the impact of the tension, attributed to the Houthi rebel group’s continued assaults on commercial ships in the Red Sea since mid-November 2023.
Freight rates for…
